Received: 4th December 2021 | Review: 14th March 2022 | Accepted: 17th August 2022
Volume 30, Issue-4, July 2022
Purpose: Sustainability disclosures are being increasingly adopted as value relevant by investors but they are still in a budding stage in India. The present study examines the factors affecting emission revelation by Indian companies.
Methodology: The emission data disclosed by 39 Indian companies on the CDP (Carbon Disclosure Project) are taken as samples for this study and the relevant financial data of these companies are collected for analysis. A logistic regression approach has been applied to determine the disclosure possibility of selected companies.
Findings: From the findings, it is inferred that the size, profitability and leverage are the key determinants of emission disclosure for the sample firms. While size has a significant positive impact, profitability and leverage are negatively related to emission revelation.
Practical Implications: The current research will add value to the existing environmental research, especially in emerging economies. Further, it will assist managers and practitioners in formulating and implementing the disclosure policy.
Originality: This article has contributed to the preliminary investigations on carbon emission data, disclosed by Indian companies on CDP. In this study, the size, profitability and leverage along with the environmental sensitivity of the industry were chosen as independent variables to understand disclosure practices in a better way.
Keywords: Emission, Disclosure, Sustainability, Emerging Economy
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